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mba-3-sem-project-management-march-2013

1. Establish the need
and importance of Project Management. Explain the
various phases of Capital Budgeting.

2. (a) A successful human relations system is
essential for successful execution of a project. What
are the problems and challenges, a project manager is
called upon to handle?

(b) Explain the concept of Time Value of Money with
suitable example:

3. (a) What are the components of Cost of
Project? Discuss briefly.

(b) What are the various sources of Project Finance?

4. Write
short notes on any two of the following :

(a) Investment
Strategies (b) Demand
Forecasting.: ,

(c) Technical
Analysis for a Project (d) Abandonment
Analysis.

Section A

5. (a) Mr. 'X'
deposits Rs. 1,00,000 in a bank, which pays 10 percent
interest. How much he should withdraw annually for a
period of 30 years ? Assume that at the end of 30 years,
the amount deposited whittle down to zero.

(b) What is the
present value of perpetuity of the constant annual
payment of Rs. 10,000, if the rate of interest is 10
percent?

6. The expected cash
flows of a project are :

Year Cash Flows
(Rs.)

1 -1,00,000

2 20,000

2 30,000

3 40,000

4 50,000

5 30,000

The cost of capital
is 12 percent.

Calculate the
following :

(d) NPV (e)
Benefit-Cost Ratio

(f) IRR
(g) Pay-Back Period

(h) Discounted
Pay-Back Period.

7.
International Funds has the following capital structure
:

Book
Value Mkt Value

(Rs.) (Rs.)

Equity
Capital
2,50,00.000 4,50,00,000

(25 lakh shares of Rs. 10 per)

Pref.
Capital
50,00,000 45,00,000

(50,000 shares Rs. 100 par, carrying 13% dividend)

Res. And
Surplus
1,50,00,000

Debentures
1,50,00,000 1,45,00,000

(1,50,000 debentures of Rs. 100 par carrying 14%
interest)

6,00,00,000 6,40,00,000

The expected dividend
per share is Rs. 1.40. The dividend per share is
expected to grow at a rate of 8% forever. Pref. Shares
are redeemable after 5 years, whereas the debenture are
redeemable after 6 years. The tax rate of the Co. is
50%. Calculate the WACC for the existing capital
structure using mkt. value proportions as weights.

8. Fit a
straight line trend to the following data using the
method of least squares. From the straight line trend,
estimate the demand for the year 2002
:

Year (x)
- 1995 1996 1997 1998 1999
2000 2001

House-hold

Heaters (y)
- 600 825 970 1210 1440
1790 2070

(in thousands)

9. The
activities, duration and direct activity costs of a
project are :

Time in Weeks Costs (Rs.)

Activity Normal Crash
Normal Crash

1-2 6 3
40,000 70,000

1-3 5 3
30,000 52,000

2-4 2 1
60,000 84,000

3-4 10 6
70,000 98,000

2-5 3 2
45,000 63,000

4-5 4 2
26,000 50,000

The indirect costs
are Rs. 10,000 per week.

(a) What is the minimum time in which this project
can be completed? What is the minimum cost at which this
can be done?